The Halifax house price index showed that the incremental monthly change in April was softer than the 0.5% fall seen in March, and on an annual basis, house prices were 0.4% higher than in April 2025, compared to a 0.8% yearly growth in March.
In Northern Ireland, average house prices rose 7.6% over the year to £224,851, followed by Scotland with a 4% jump to £222,448.
Price growth in Wales slowed to 0.7% year-on-year, with values averaging £230,952.
Within England, Northern regions saw stronger growth. The North East recorded a 4.5% rise in house prices over the year to £183,445, while the North West saw price growth of 3.4% to £248,945.
House prices fell in Southern regions, such as the South East, with a 2% yearly decline to £383,044, and London, with a 1.4% decrease to £536,051.
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More cautious households
Amanda Bryden, head of mortgages at Halifax, said: “After a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook. In particular, higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates – a shift that has already pushed up borrowing costs for many buyers.
“This understandably leads to more caution among some households, with the cost-of-living once again front of mind and extra thought being given to planned property moves.”
Bryden said the housing market still showed resilience and while activity would likely ease in the near term, “the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation”.
She added: “Another important factor is that the majority of existing homeowners are on fixed rate mortgages, meaning they are largely insulated from short-term changes in interest rates.”
Hope for first-time buyers
Bryden said a slower pace of house price growth might be disappointing to existing homeowners, but “for those looking to step onto the property ladder, stable prices are helpful, even if higher mortgage rates mean affordability remains stretched”.
She added: “The average price paid by first-time buyers has fallen slightly to £238,908, its lowest level so far this year.”
Mark Harris, chief executive of SPF Private Clients, said that although UK gilts and swap rates had risen, mortgage rates were falling.
Harris said: “First-time buyers will be encouraged as house prices remain steady rather than soar. Lenders are working hard on offering solutions to those trying to get on the ladder for the first time, which is leading to an improvement in their numbers.”
Continuing with plans
Tomer Aboody, director of MT Finance, said the housing market saw a “small bounce” at the end of last year, giving buyers and sellers more confidence.
Aboody added: “Since then, market conditions have become more difficult, with the hope of lower base rate and stamp duty concessions dwindling. However, many have come to the conclusion that they have waited long enough to move and now simply have to because of their situation, regardless of what is going on in the Middle East and the pressure that is placing on the economy.”
Tom Bill, head of UK residential research at Knight Frank, said: “The recent spike in mortgage rates will only put gradual downwards pressure on house prices as more favourable offers that predate the Middle East conflict take several months to lapse. It means some buyers are keen to complete, while others have seen their spending power reduced. We expect house prices to begin falling in coming months, but modest growth to return by the end of the year.
“However, that will depend on how long the conflict lasts, to what extent it escalates and how the government responds to the economic shock, whoever is Chancellor at the time of the next Budget.”
